One Sentence That Explains The Monster Banking Comeback

David Goldman states the obvious, but it’s worth being reminded of it:

Give banks unlimited access to financing at close to 0% and a steep yield curve, exempt them from marking their worst assets to market, and they will earn money, even when their combined commercial loan book is shrinking at an annual rate of 20% –

Obviously the awesome performance of Wall Street isn’t due to any kind of lending pickup.

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